Boohoo Group PLC (AIM:BOO) shares may have fallen immediately following publication of the online fashion group’s annual results, but it could have been worse, according to analysts at Peel Hunt.
Boohoo’s debt pile soared while revenues slid 17% to £1.46 billion in the 2024 financial year, leading to statutory losses before tax of £159.9 million compared to £90.7 million of losses in 2023.
“Trading conditions remain challenging, but there is improved momentum in the core brands, and the Debenhams platform is gathering pace,” said Peel Hunt. “Guidance points to revenue and profit growth, with a return to cash generation.”
The broker made no changes to its sales growth expectations but did reduce the full-year 2026 EBITDA margin by 100bps to 5.8%.
Peel Hunt expects Boohoo to be free cash flow positive at the end of the latest financial year.
“With the drivers for improved spending power and better trading momentum into autumn taking shape, we look for boohoo to deliver steady progress in margin recovery and cash generation.
“However, we believe the share price will likely require evidence of positive sales growth to lift investor confidence.”
The stock is a buy with a target price of 75p against a 35p publication price.